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UK Government: Review Of Green Energy Subsidies Coming Next

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ReNews

Chancellor George Osborne remains committed to a review of the Levy Control Framework despite leaving the policy out of this afternoon’s Summer Budget. Whitehall sources said changes to the low carbon mechanism is on the cards for later in the government despite no specific mention in today’s proceedings.

A number of national newspapers, citing Tory sources, said the move would be announced today.

Cornwall Energy analysts have said the lack of any update is itself a bad sign, as their projections show there will be nothing left to spend in 2020/21, based on current trajectories.

Osborne did announce plans to remove the Climate Change Levy exemption for renewable electricity, stating the change would “correct an imbalance in the tax system by preventing taxpayers’ money benefitting renewable electricity generated overseas”.

The REA called the move “worrying” and said the treasury should “rethink the plans”.

The trade body said that although there is an issue with foreign generators benefiting from the policy, it has ultimately “driven investment and been factored into both original project finance decisions and current business plans.”

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